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Network News: Emulex to Acquire Endace

Here’s a roundup of some of this week’s headlines from the network sector:

Emulex to acquire Endace. Emulex (ELX) and Endace Limited, a supplier of network visibility infrastructure products, announced that Emulex has made an offer to acquire all of the outstanding equity interests in Endace in an all cash transaction. Endace provides network monitoring appliances, network analytics software and ultra-high speed network access switching with 100 percent accuracy. The approximately $130 million acquisition will combine Emulex's software-defined convergence architecture with Endace's ability to record, visualize and monitor network traffic. “This acquisition provides Emulex with a strategic entry point into the network performance management space at a disruptive point in time, as speeds move to 10Gb, making network visibility from end-to-end a critical requirement in a converged network environment,” said Jim McCluney, chief executive officer (CEO), Emulex. “Acquiring Endace aligns with our software-defined convergence strategy, doubles our total addressable market and places Emulex in another high-margin, high-growth market. Excluding transaction related expenses, we expect the acquisition to be neutral to our non-GAAP earnings per share for fiscal 2013 and accretive at the beginning of fiscal 2014.”

CenturyLink deploys Infinera for 100G backbone. Infinera (INFN) announced that CenturyLink (CTL) has deployed the Infinera DTN-X platform, featuring 500 gigabit per second (Gb/s) long haul super-channels on its nationwide fiber optic backbone. This platform enables CenturyLink to enhance its nationwide next generation backbone transport network to support critical video, mobile, and cloud IP services, and extend its ability to deliver up to 100 Gigabit Ethernet services (GbE) to the company’s data centers and customer facilities around the country. “We evaluated the available 100G solutions for long haul optical transport and the DTN-X platform stood out,” said Matt Beal, CenturyLink senior vice president - corporate strategy, product development and chief technology officer. “Our experience with the Infinera DTN platform has demonstrated a system based on quality, ease of use, proven technology and reliability. As a customer since 2004, we look forward to including the DTN-X as part of our next generation network and achieving the same positive results as we have in the past.”

Alcatel-Lucent selected by Telefónica. Alcatel-Lucent (ALU) announced that it has been selected by Telefónica to upgrade the operator’s IP networks, initially in Argentina and the Czech Republic, with the Alcatel-Lucent 7950 Extensible Routing System (XRS). As a result of the upgrade Telefonica will have a high-capacity IP network in these markets to support all of its service offerings, including fixed and mobile broadband and IPTV. “This collaboration with Alcatel-Lucent is part of a far-reaching network modernization effort which will give us one of the most powerful and efficient IP networks," said Enrique Blanco, Telefónica’s Global Chief Technology Officer. "In order for us to dramatically increase our network capacity and intelligence to address our customers’ fast evolving demands we needed the support of a new, truly disruptive solution. The Alcatel-Lucent XRS met this requirement.”